The Pundit will leave the overall subject of John Hughes point in this op-ed up to debate.  What I’m sure of is that his inclusion of payday loans is misguided and his understanding of them is minimal.  Payday loans aren’t offered to live beyond one’s means; payday loan customers use them to meet unexpected needs and in emergency situations.

Hughes also characterizes the rates as “impossible” ($15 on $100 for 2 weeks on an unsecured loan is “impossible?”) and the customers as “unsophisticated.”  Once again we see the paternalistic lack of respect towards and stereotyping of people whose choices the writer doesn’t understand.  I wonder how often Mr. Hughes pays over 1000% APR on an overdraft fee.